Small businesses make up 98 per cent of all businesses in Canada and employ two-thirds of the private workforce. However, recent polling suggests that despite their significant economic footprint, such entrepreneurs feel forgotten.

A Canada-wide survey commissioned by Yahoo Canada and conducted by Abacus Data reveals that small business owners — a company with less than 100 employees — feel they are being left out of the national economic narrative.

Many entrepreneurs are leaning on community ties and flexibility to adapt as they continue to carry the heavy load of challenges around inflation and staffing. The poll surveyed 500 small business owners in Canada from Sept. 24 to Oct. 1, 2025, with a margin of error of +/- 4.4 per cent. The data was weighted by age, gender, education and region.

Small businesses are resilient, but they’re running on empty

Regardless of widespread economic challenges such as high inflation, reduced consumer spending and mounting financial pressure, Canadian small business owners say they’ve proven remarkably adaptable.

According to the Abacus Data report, 72 per cent of owners adjusted to significant changes over the past year. These challenges ranged from rethinking pricing to adopting new technology while tweaking their approach to reaching more customers.

Although the ability to pivot has become second nature, the cost of constant reinvention is showing.

“Adaptability has become the default setting for small business owners,” said Eddie Sheppard, vice-president of insights at Abacus Data.

While about 74 per cent of the owners surveyed feel confident in their innovating ability, alongside 68 per cent who feel ready to respond to future challenges, a deeper look reveals that optimism is heavily qualified: business owners are tired, and feel left behind and stressed by financial planning.

What owners say they need now: Stability, not slogans

Asked what kind of government support would make the biggest difference right now, the most consistent theme across responses was the demand for stability and a flashy new program.

“Relief from inflation and operating costs would make the biggest difference right now, and almost half say that alone would boost their optimism,” Sheppard told Yahoo News Canada.

Despite turmoil with the U.S., business owners’ top concerns are not related to tariffs or border issues:

• 78 per cent cited inflation as a top concern
• 67 per cent highlighted interest rates
• 67 per cent also pointed to rising non-labour operating costs

Big on community, but losing faith in fairness

Despite 75 per cent of small business owners surveyed viewing themselves as community anchors, nearly 7 in 10 (67 per cent) believe they’re treated unfairly compared to large corporations.

“Small business owners see themselves as community pillars, they know their customers by name, they sponsor local teams, they create jobs that stay in the neighbourhood. But many feel they’re treated unfairly compared to big corporations,” Sheppard emphasized.

Nevertheless, 73 per cent of respondents hinted at a sign of optimism about the year ahead. The majority of small business owners are proud of what they’ve built and inspired to carry their passions forward in the future.

What drives small business owners?

The report makes it clear that what keeps the small business owners going isn’t just the pursuit of wealth but also a personal mission.

While becoming financially independent (40 per cent) and “to be my own boss” (40 per cent) were the leading motivations for small business owners, results show they also take pride in leaving a positive mark in their industry and leaving behind a legacy for their families and communities.

The report also revealed that success for small business owners meant building a loyal customer base (29 per cent) and achieving a healthy work-life balance (26 per cent) that supports well-being and sustaining revenue growth.

Collectively, the picture painted is of entrepreneurs who are driven more by autonomy, impact and community connection than just financial ambition.

What this means for Canada’s economy

The results from the Abacus/Yahoo Canada survey send a crystal clear message on behalf of small business owners in Canada: these owners are committed, creative and crucial to their local economies, but many continue to operate under unsustainable strain, with the most common ask being a simple one: clarity, predictability and fair treatment.

With close to one million small businesses across the country, which employ roughly two-thirds of the private labour force, how Canada responds to this call for relief and recognition may determine the pace and shape of future economic recovery.

Source: Yahoo News